Key area for DXY as we approach the 93.00 pivot area and 23.6% fibbo retracement area. We could see further $ weakness if we have a clean break and close below this area.
On the contrary, if the support holds - we could see a bounce in the $ and some strength enter back into the market.
From a fundamental point of view, the US elections has a massive part to play in the recent $ weakness, risk is entering the market, stocks are being bought and $ are being sold aggressively ... We could however see this change but it will be a political play. If Biden wins and Trump concedes, then stocks go bid further and $ should continue to grind lower however, if Biden wins and Trump takes it to the courts, things will not play out this way ... instead stocks will crash and $ will be bought aggressively as it holds safe haven status therefore causing a $ rally in the form of (risk off mood).
So a crucial moment for the $ in the next few days. We wait to see where it closes and we wait on the US election results.
On the contrary, if the support holds - we could see a bounce in the $ and some strength enter back into the market.
From a fundamental point of view, the US elections has a massive part to play in the recent $ weakness, risk is entering the market, stocks are being bought and $ are being sold aggressively ... We could however see this change but it will be a political play. If Biden wins and Trump concedes, then stocks go bid further and $ should continue to grind lower however, if Biden wins and Trump takes it to the courts, things will not play out this way ... instead stocks will crash and $ will be bought aggressively as it holds safe haven status therefore causing a $ rally in the form of (risk off mood).
So a crucial moment for the $ in the next few days. We wait to see where it closes and we wait on the US election results.
Comment:
The 93 pivot has just been broken - currently at 92.92 - USDZAR, USDMXN & USDCNH @ fresh lows.